Question: QUESTION 23 Demand for computers has recently changed amid the COVO-19 pandemic. The manager of a small computer store needs to determine when to replenish

QUESTION 23 Demand for computers has recently
QUESTION 23 Demand for computers has recently changed amid the COVO-19 pandemic. The manager of a small computer store needs to determine when to replenish computers. Demand for computers is expected to average 12 units a week with a standard deviation of two units a week. Order lead time averaces 4 weeks with a standard deviation of one week. The manager wonders whether or not stockout would occur if he reorders when inventory on hand is 70 units. Based on the above information: What is the risk of a stockout during lead time? 06% 8%

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